US markets hold steady after Trump’s expletive weekend ultimatum
US markets held their nerve on Monday, as Wall Street traders returned to their desks for the first full session after President Donald Trump’s explosive, expletive-strewn demands for Iran to re-open the Strait of Hormuz.
Brent crude oil held the $107-a-barrel mark. But the global benchmark eased overall, by $1.50 to $107.54. European stock exchanges stayed shut for the long Easter weekend, but futures markets were expecting New York’s S&P 500 to rise at the start of business in the US.
The broad benchmark was called 23 points higher during the London morning, with New York trade due to start at 2.30pm British Summer Time.
Brushing off explosive tirade
Investors seemed to be taking Trump’s latest foul-mouthed tirade in their stride. Strong job creation numbers helped them look past his call for Tehran to “Open the f***in’ strait you crazy b***ards”.
It was a reference to the Strait of Hormuz, the waterway through which a fifth of the world’s crude oil typically flows during peacetime.
The latest non-farm payroll, report out on Friday, was more soothing. It showed the creation of 178,000 jobs in the US outside the agricultural sector in March. The headline figure powered through the consensus forecast of 65,000, while the unemployment rate unexpectedly fell to 4.3 per cent from 4.4 per cent.
According to City bank ING, the numbers added to a trend for strong economic data running through 2026.
James Knightley, chief international economist US, said: “As with most of the data from the start of the year, it is a positive surprise and suggests that the US is on a firm footing to take on the economic challenges posed by the Middle East conflict.”
Sentiment exposed
Nonetheless, amid Monday’s relative market calm, sentiment remained exposed to the twists and turns of an unpredictable conflict and the erratic rhetoric from Washington.
And Knightley warned that the economic data would soon channel the impact of the war: “Our concern is that with the Middle East conflict showing little sign of coming to an imminent conclusion, an overlay of heightened geopolitical, economic and market angst is not going to incentivise business to suddenly start hiring now.
“In fact, with cost pressures rising and consumer spending power being squeezed by higher gasoline prices, corporate profitability will face more challenges.”
With Trump’s threat to target Iran’s power infrastructure and its bridges, investors continued to keep close watch on newsfeeds. His language on Truth Social was stark: “Tuesday will be power plant day, and bridge day, all wrapped up in one, in Iran.
“There will be nothing like it!!!”
The same could be true of robust economic data the longer the war continues. Knightly pointed to “risk that employers will look to cost containment measures”, and warned: “This threatens weaker payrolls numbers in the coming months.”